A posting on our Live Chat facility on Saturday (28 October) questioned the authenticity of an outspoken email that former senior Shell manager Hans Bouman sent to Shell CEO Jeroen van der Veer. The posting said that the email is “very worrying if its genuine”.

In fact its authenticity has been verified by more than one source including a Shell insider who has direct contact with Mr Bouman. To say that the email is “very worrying” is a massive understatement bearing in mind the seriousness of the allegation that Van der Veer is surrounded by “sycophants, bullies and those without personal integrity”. Some are even described by Bouman as “megalomaniacs”.

It is important to stress that these astonishing comments were not made by some uninformed outside source, but by Hans Bouman, the senior Shell manager who ran the giant Groningen field in the Netherlands. According to our contacts, Bouman worked for Shell for over 30 years and is known personally by Van der Veer and other most senior Shell directors. The credibility of his comments is heightened by the fact that he is apparently held in the very highest regard by his peers as being a man of vision and integrity with a wide ranging expert knowledge of Shell operations. In other words, a man who knows what he is talking about and whose candid well informed views should be treated with the utmost respect.

The blunt analysis set out by Hans Bouman in his email to Van der Veer is compatible with our own conclusions about the deep malaise at the top management level which has destroyed Shell’s reputation for honesty and competence. As we have pointed out many times, Shell management has been saved by the one all important issue not in its control – the high price of oil. Matters in their control are going so disastrously wrong that Wikipedia has launched a new page focused entirely on Shell environmental and reputation issues, including the sinking flagship Sakhalin II project:

Leaked Shell internal emails containing illuminating comments about the Sakhalin II project were the subject of a recent MarketWatch article. The email correspondence was on that occasion between Hans Bouman and Engel van Spronsen, the then Technical Director of Sakhalin Energy (subsequently a Shell Vice-president). Both gentlemen are now retired from Shell: It is plain from reading the exchange that Spronsen valued the opinion of Bouman.

We have more Bouman emails which will be published in due course. As we have previously stated, they are apparently viewed by Shell insiders as prized collectible items because of his outspoken, prophetic and lucid writing style.

This brings me to the case of a Shell Asset Integrity Engineer who expressed dissident views internally at Shell concerning serious management misdeeds which put profits before principles (and the safety of Shell employees lives). Former Shell geologist, Dr John Huong, a loyal decent Shell employee for almost 30 years, is still under threat of imprisonment in Malaysia at the behest of Shell management.

Dr Huong made the mistake of speaking the truth about this ethically flawed multinational giant. It was he who first questioned in internal correspondence a policy of duping shareholders about Shell’s hydrocarbon reserves. Eight Royal Dutch Shell companies subsequently joined forces to crush him in an unprecedented legal action launched in June 2004. Since then every conceivable trick has been used by Shell to drag out the litigation (year after year) and intimidate Dr Huong. The strategy is clear. Shell management is determined to silence him at all costs and to this end is prepared to destroy him physically and financially.

Please think about it? Have you ever heard of EIGHT giant companies ganging together to bury an unemployed family man in draconian High Court litigation involving multiple proceedings, including contempt of court?

I hold Shell management in contempt for such evil behaviour.

Jeroen van der Veer ignored an email from Dr Huong (prior to the onset of litigation) just as he appears to have done with the email he received from Bouman. Mr Van der Veer apparently only wants to hear good news. It is that policy which brought about the demise of the Tell Shell Forum for open discussion on www.shell.com.

It is now clear that we were not the only people ringing alarm bells about the unscrupulous arrogant bullyboys at the top of Shell.

SHELL BLOG

Comments

Bogus Group: Further to my post on this blog, 28 August'17, there may be some interest an an article in yesterday's Upstream "Trial set for clash of LNG players".

TotallyHackedOff: Shell - as I am sure with many global super majors- is heavy with narcissists at all levels. Lots of people like Trump rollicking around- get in their way and you’re a gonner! See you later Rexy baby!

TotallyHackedOff: In reply to Bonus Group and Another Concerned Employee- its clear reading from your posts that Shell and BG shared many business cultural similarities making the tie-up an obvious one. I know of a few Shell employees who resigned, joined BG and are now back at Shell again- it stinks of a plant/trojan horse ending! It is well known that Shell has an 'inner circle' and if you find yourself outside that as many of the technical folk do, you don't stand a chance. Its all a bit wink, wink nudge, nudge. I even remember one manager (now a VP of something) telling me how I needed to 'read between the lines' which made me think it was all a load of bollocks and how the politically adept arse kissers rose through the ranks blissfully unaware of how their actions impacted their colleagues. The alpha men and women were all the same- keen to get ahead at anyones expense and doing secret backroom deals. Its one ginormous playground and the bullies will win as they are keeping the other bullies in place.

Bonus Group: 'Another Concerned Employee'talks about Shell's 'scooby-doo' business priciples, BG's were just as opaque. If you asked someone in HR about policy you would be deflected to 'The Portal' and left to fend for yourself. Often the policies conflicted with each other and had no foundation in law. This was reflected in the hypocritical management 'do as I say, not as I do' policy.
The closest experience most of BG Senior Management had of oil rigs and platforms was reading about them in comic books. The Brasil Asset was a complete shambles with its 'Simple Simon' approach to geoscience and cappuccino lifestyle. Unfortunately, most of these overpaid sociopaths migrated to Shell and are waiting, mouth's open for their next bonus. Shell must be trying hard to find ways to cover up grotesque errors in reserves booked by this Asset. Hopefully, Shell's assurance process is better than BG's with its £2Bn failure.

Yet Another Concerned Employee: Carillion, for whom the bell tolls! Remarkable that a Shell Executive should have a finger in this pie with its aggressive auditing practices. More 'pulling the wool' over the shareholder's eyes. Were the auditors asleep at the wheel when this was happening? There should be a full investigation, and those responsible made accountable. Perhaps, sunny Brunei is a safe haven? I wonder what the extradition treaties between the UK and Brunei are?

Another Concerned Employee: Shell HR finds it easy to overlook its fake scooby doo business principles whenever it suits them. A number of staff implicit in OPL and the spin doctors trying desperately to cover up the crisis are still on payroll. It won't surprise anyone that Ceri was one of Brinded's loyal lapdogs during his dictatorship. Also no surprise she landed such a sweet job in Brunei.

Concerned Employee: Not sure if you know but..
Cerie Powell - ex EVP exploration now MD Brunei Shell Petroleum was a non exec director of Carillion (now in liquidation). She resigned once she was demoted to Brunei in 2016 (?) but given the news around the legacy issues involving Carillion, should she really hold a senior position in Shell Group ?

Bonus Group: It is understandable that a niche now exists in the market for a company similar to BG Group, but for Neptune Energy to set its aim at emulating and becoming like BG is nothing short of horrifying. Why anyone should wish to recreate the inept management, twisted HR policies and rancid technical half truths of BG Group in order to deceive the shareholders is beyond comprehension. If they do, then the Serious Fraud Office should be on the alert. Sammy 'two pools', whose past remit included selling Enterprise Oil to Shell, rather than ENI is made of sterner stuff. That said, his nuclear ambitions did fall somewhat short of those of Kim Yong Un. Let's wish Neptune Energy a long, scandal free future and greater integrity than bungling BG with its House of Cards and flamboyant ineptitude.

Bogus Group: Following the acquisition of Engie the Financial Times headline “Neptune Energy sets aim on being the next BG Group” may have sent a chill through some. To think there could possibly be a rise from the ashes is an alarming prospect
However there was some comfort in the company chairman statement “We have the opportunity to take the time to get it right”.
Hopefully this means their Ethics and Compliance foundation will actually be more than just another policy open to distortion by misconduct.

Bill Campbell: Is the New York City case against Oil Companies justifiable or just hot air?

Many, if not all prestigious US scientific journals estimate largest source of air pollution in US is caused by vehicle emissions. Current estimates that US has some 260 million automobiles and 11 million trucks. It is the daily emissions from these vehicles that are the cause of scientific concern. But anybody visiting Florida, and following a construction truck, will be familiar with black smoke in copious amounts emitting from the vertical exhaust pipe, sometimes it's so bad it can restrict your vision but Florida is not the only state of the US that does not require emission control, there are many more, monitoring for example (like a UK vehicle MOT) is not legally required or carried out.

So perhaps De Blasio should start suing these delinquent states.

In any case, I find the whole matter ludicrous in a country, where their President claims that human activity is not related in any way to global warming and appoints a head of EPA who is also so inclined (a man described by NY Times as an arsonist in the Fire Station) so why does Shell et all not call as witnesses in their defence the current EPA Director, or otherwise why does De Blasio not start by suing those states that allow millions of vehicles to pollute the atmosphere daily.
Bill

Bonus Group: Further to my last post on this blog. Sound Energy have now arranged a slap-up bean feast for their shareholders to be held on 15th February at Grace Hall, Leadenhall Street, London. Drinks at Carriages afterwards. Dress is formal so don't expect too energetic a food fight. Attendees must pay for their own tickets! All will be revealed about the new Coro strategy. You may recall that Sound shareholders will receive Coro shares as a result of the divestment of Sound's Italian assets. The question is whether Sound shareholders will end up in the soup.

Bonus Group: There are rumblings in the ether about Rockhopper Exploration plc having failed to perform Due Diligence with integrity in respect of their purchase of the Italian focused company Mediterranean Oil and Gas (MOG) in 2014, and in particular MOG's asset, the Ombrina Mare oil field.
Following the decision in February 2016 by the Ministry of Economic Development not to award the company a production concession covering the Ombrina Mare field, the company has considered its legal options with regard to obtaining damages and compensation from the Republic of Italy for breaching the Energy Charter Treaty (ECT).
Could this have anything to do with the sudden and unexpected departure of Rockhopper's Chief Operating Officer, one 'Good Time' Fiona MacAuley? Fiona, a Chartered Geologist, started her career with Mobil North Sea Limited in 1985 and has subsequently held key roles in a number of leading oil and gas firms across large mid and small cap E&Ps including BG and Hess.
Fiona is now Chief Executive Officer of Echo Energy plc where Stephen Whyte (also ex BG) is a Non-Executive Director, previously having been Chairman of Sound Energy. Fiona will also become a Non-Executive Director of Saffron Energy plc. It is proposed that Saffron acquires Sound Energy's portfolio of Italian interests and permits through the acquisition by Saffron of Sound Energy Holdings Italy Limited (SEHIL). SEHIL holds all of Sound Energy's Italian oil and gas interests through its own wholly owned subsidiary, Apennine Energy SpA (APN). It is proposed that Saffron will be renamed Coro Energy plc.
This is yet another 'reverse takeover' by the Sound Energy/Echo Energy Team. The share options for the directors are raining on them like confetti. Could there be bonuses in store for the Directors of this association of companies where the paint is never allowed to dry?
Plenty of 'smoke and mirrors' and wool being pulled over the shareholders' eyes in this can of worms.

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